China to limit construction of new solar panel factories

China, the world's biggest maker of solar panels, will limit construction of new photovoltaic manufacturing plants to curb excess capacity in a move that may encourage consolidation within the industry.

New solar plants that "purely" expand capacity will be strictly banned, the Ministry of Industry and Information Technology said in a statement on its website yesterday.

Annual spending by companies for research and development and upgrading equipment must total at least 3 per cent of revenue and must exceed 10 million yuan (HK$12.6 million).

Chinese authorities have pledged to cut overcapacity in industries from steel to paper as policy makers seek to reduce the economy's reliance on investments and exports.

A global oversupply of solar panels led to a 20 per cent plunge in prices last year, according to data.

The policy will slow efforts to expand production capacity in favour of mergers and acquisitions as a growth strategy for the biggest companies, said Angelo Zino, an analyst with S&P Capital IQ in New York.

Comments (0)

This post does not have any comments. Be the first to leave a comment below.


Post A Comment

You must be logged in before you can post a comment. Login now.

Featured Product

KACO New Energy - Residential PV Systems - 2.0 - 5.0 KW, blueplanet 2.0 - 5.0 TL1

KACO New Energy - Residential PV Systems - 2.0 - 5.0 KW, blueplanet 2.0 - 5.0 TL1

Small size, light weight, great features, best value! With a line-up of 1-phase transformerless units, KACO new energy will be inaugurating the new "blueplanet" solar PV inverter series. Newly designed and constructed from scratch, the blueplanet TL1 fulfil the highest requirements for optimum use in residential solar power plants.